Sina Technology News Beijing time on October 28 in the early morning news, Amazon today released the company’s third quarter financial report for fiscal year 2022. The report shows that Amazon’s net sales in the third quarter were $127.101 billion, an increase of 15% compared with $110.812 billion in the same period last year, and a 19% year-on-year increase excluding the impact of exchange rate changes; net profit was $2.872 billion, compared with last year’s $2.872 billion. Net income for the same period was $3.156 billion, down 9%; diluted earnings per share were $0.28, compared with $0.31 per diluted share in the same period last year.
Amazon’s third-quarter diluted earnings per share exceeded Wall Street analysts’ previous expectations, but revenue missed expectations and the company’s fourth-quarter revenue outlook fell short of expectations, causing its stock price to drop nearly 15% after the market. .
Main achievement:
In the quarter ended Sept. 30, Amazon’s net profit was $2.872 billion, or $0.28 per diluted share, which was lower than the same period last year. In the third quarter of fiscal 2021, Amazon’s net profit was $3.156 billion, or $6.12 per diluted share. Amazon’s third-quarter operating profit was $2.525 billion, down sharply from $4.852 billion a year earlier.
Amazon’s third-quarter net sales were $127.101 billion, up 15% from $110.812 billion in the same period last year. Excluding the $5 billion negative impact of currency changes on Amazon’s net sales, Amazon’s third-quarter net sales rose 19% compared to the same period last year.
Amazon’s third-quarter net product sales were $59.340 billion, compared with $54.876 billion in the same period last year; net service sales were $67.761 billion, compared with $55.936 billion in the same period last year.
Amazon’s third-quarter diluted earnings per share beat Wall Street analysts had expected, but revenue fell short of expectations. According to data provided by Yahoo Finance Channel, 38 analysts had expected Amazon’s third-quarter revenue to reach $127.45 billion on average, and 35 analysts had expected Amazon’s third-quarter diluted earnings per share to reach $0.21.
In July of this year, Amazon expected to expect net sales of between $125 billion and $130 billion in the third quarter of fiscal 2022, an increase of 13% to 17% year-on-year, including about 390 foreign exchange rate changes expected to bring. Basis-point negative impact, the outlook averaged $127.5 billion, beating analysts’ expectations at the time; operating profit is expected to be between $0 and $3.5 billion.
Performance of each department:
– By region:
Amazon North America (US, Canada) third quarter net sales of $78.843 billion, an increase of 20% compared to $65.557 billion in the same period last year; operating loss of $412 million, compared to an operating profit of $8.80 in the same period last year 100 million US dollars, equivalent to a year-on-year decrease of 147%, or a year-on-year decrease of 158% excluding the impact of exchange rate changes.
Amazon’s international divisions (UK, Germany, France, Japan, and China) reported third-quarter net sales of $27.720 billion, down 5 percent from $29.145 billion in the same period last year, or up 12 percent excluding the impact of currency changes ; Operating loss was US$2.466 billion, compared with US$911 million in the same period last year, which is equivalent to a 171% year-on-year increase in operating loss, and a 147% year-on-year increase excluding the impact of exchange rate changes.
Net sales of Amazon AWS cloud services in the third quarter were 20.538 billion US dollars, an increase of 27% compared with 16.110 billion US dollars in the same period last year, and 28% year-on-year excluding the impact of exchange rate changes; operating profit was 5.403 billion US dollars, compared with the same period last year. It was an 11% increase from $4.883 billion in the same period last year, or a 1% year-on-year increase excluding the impact of currency changes.
Amazon’s third-quarter sales from North America accounted for 62% of total sales, compared to 59% in the same period last year; sales from international sales accounted for 62% of total sales 22%, compared with 26% in the same period last year; sales from AWS cloud services accounted for 16% of total sales, compared with 15% in the same period last year .
– By service and business type:
Amazon’s third-quarter net sales from online stores were $53.489 billion, an increase of 7% compared with $49.942 billion in the same period last year, and a 13% year-on-year increase excluding the impact of currency changes.
Amazon’s third-quarter net sales from brick-and-mortar stores were $4.694 billion, an increase of 10% compared with $4.269 billion in the same period last year, and a 10% year-on-year increase excluding the impact of currency changes.
Amazon’s third-quarter net sales from third-party seller services were $28.666 billion, an increase of 18% from $24.252 billion in the same period last year, and a 23% year-on-year increase excluding the impact of currency changes.
Amazon’s third-quarter net sales from subscription services were $8.903 billion, an increase of 9% from $8.148 billion in the same period last year, and a 14% increase excluding the impact of currency changes.
Amazon’s third-quarter net sales from AWS cloud services were $20.538 billion, an increase of 27% compared with $16.110 billion in the same period last year, and a 28% year-on-year increase excluding the impact of currency changes.
Amazon’s third-quarter net sales from other businesses were $1.263 billion, an increase of 163% compared with $479 million in the same period last year, and a 168% increase excluding the impact of currency changes.
Operating expenses:
Amazon’s total operating expenses in the third quarter were $124.576 billion, compared with $105.960 billion in the same period last year. in:
– Cost of revenue was $70.268 billion, compared to $62.930 billion in the same period last year;
– Compliance expenses were $20.583 billion, compared to $18.498 billion in the same period last year;
– Technology and content spending was $19.485 billion, compared to $14.380 billion a year earlier;
– Marketing spending was $11.014 billion, compared to $8.010 billion in the same period last year;
– General and administrative expenses were $3,061 million, compared to $2,153 million a year earlier;
– Other operating income was $165 million, compared to other operating expenses of $11 million in the same period last year.
Cash Flow Information:
For the 12 months ended September 30, 2022, Amazon’s operating cash flow was $39.7 billion, down 27% from a year earlier; for the 12 months ended September 30, 2021, Amazon’s operating cash flow was $54.7 billion.
In the 12 months ended September 30, 2022, Amazon’s free cash flow was an outflow of $19.7 billion, far less than the same period last year; in the 12 months ended September 30, 2021, Amazon’s free cash flow Cash flow was an inflow of $2.6 billion.
After deducting principal repayments, Amazon’s free cash flow in the past 12 months was $28.5 billion, far less than the same period last year; in the 12 months ended September 30, 2021, Amazon deducted the aforementioned items Future free cash flow was an outflow of $8.8 billion.
After deducting principal repayments and assets acquired under capital leases, Amazon’s free cash flow for the trailing 12 months was $21.5 billion, well below the prior-year period; in the 12 months ended September 30, 2021 In time, Amazon’s free cash flow after deducting the aforementioned items was an outflow of $3.9 billion.
Performance Outlook:
Amazon expects net sales in the fourth quarter of fiscal 2022 to be between $140 billion and $148 billion, up 2% to 8% year-over-year, including about 460 basis points of expected currency changes. The negative impact, which averaged $144 billion, fell short of analysts’ expectations. According to data provided by Yahoo Finance, 37 analysts on average expected Amazon’s fourth-quarter revenue to reach $155.15 billion.
Amazon also expects operating profit in the fourth quarter of fiscal 2022 to be between zero and $4 billion, compared with $3.5 billion in the same period in fiscal 2021.
The outlook above assumes that Amazon will not enter into any other business acquisitions, reorganizations or legal settlements.
Share price changes:
On the same day, Amazon shares fell $4.70 in regular Nasda trading to close at $110.96, or 4.06%. In subsequent after-hours trading as of 5:22 p.m. Eastern Time on Thursday (5:22 a.m. Beijing time on Friday), Amazon’s stock price fell again by $16.23 to $94.73, or 14.63%, below 52 Weekly lowest price. In the past 52 weeks through Thursday’s close, Amazon’s high was $188.11 and its low was $101.26. (Tang Feng)